Operational Costing Basics

Buy the license to Operational Costing (now available to all in V10 and beyond)
Load License (not needed for version 10 and beyond)
Turn on Security (Not needed for version 10 and beyond)
Verify that all the balance for an item in all locations are zero or greater.
Flag the item at all locations to a yes for Operational Costing in INV > Inventory > Item Maintenance > Choose item > 1. General Information.
It creates two new files that track operational cost.
Table I33_OPER_COST or I33OPCST.INV
Table I34_ALLOCATE or I34ALLOC.INV
The I33OPCST.INV table keeps track of how much product is in cost classification by date available.
A “purchase” is defined as a Purchase Order, a stock addition without a purchase order, or any misc. inventory transaction that increases the inventory quantity available to sell.
So for all those document that are keyed on the 11/15 date, they will create an Operational Cost Balance record saying that there is x-tons of product at this cost to allocate.
This amount can change as the documents are edited for corrections or service items.
So fertilizer ends up with Operational cost balances that look roughly like this:
11/18/13 - Total Cost of 448,740.85 - unit cost of $599 - purchase tons of 749.15
11/20/13 - total cost of 60,000.00 - unit cost of $300 - purchase tons of 200.00
The I34ALLLOC.INV table track the documents keyed since turning on the option.
Each document has an available date that determines which Operational cost balance it gets applied to.
A “sale” is defined as a booking, a prepayment, an invoice without a prepayment or booking, or any misc. inventory transaction that decreases inventory. At this time, the operational cost does not include sales orders or delivery tickets.
So if the Available Date of the document falls in the range of the Operational cost balance, then the quantity of that document is allocated to the cost for inquiries and reporting purposes.
Please note that this is not a hard assignment.
Because the Operational Cost Balance can change based on edits, each time you do an inquiry or a report, a sales document could be assigned to a new operational cost.
The operational cost is not SAVED with the document.
The operational cost is calculated each time it is requested.
So this is a fluid figure.
Someone goes back and corrects a stock addition for 100-tons to 10-tons, that means 90-tons of prepay, bookings, and invoices have to look to a new operational cost record for their operation cost.

Reports:

There is an advanced report that shows you the Operational balances and what documents are allocated to them for this report.

There is an inventory activity report that you can design. Example:

You can also print the operational costing on booking reports, prepay reports, and invoice reports.
Example:

You can look up the Operational Costs via Inventory status Inquiry.

Once you select the Purchase Date Operational Cost balance Record to drill into, then you are shown the ‘Purchases’ that make this up.

And then you can click on the sales to show those documents

Then you can drill into these documents to the pricing and Ledger costing.

Click on the Operational Cost to see the cost allocated. Remember that is allocated each time you click that button. It is not a saved cost on the document but a calculation each time you ask to see it.

KEYS TO REMEMBER:

Extended Option that must be purchased and new license loaded.
Or in Version 10 you receive as part of your support & maintenance dollars.
All locations must be zero or positive when you turn on for that item.
Turn on for all locations of that item.
It only tracks documents on the date on/after you turn on the flag.
It changes every time you ask or run for the report because the operational cost is not SAVED to a document. It is calculated each time to the daily operational cost balance.

AGRIS Customer Documentation

Operational Costing Basics